Weighted average interest rate calculator
Before you decide to consolidate or refinance multiple scholar loans, you’ll want to figure out what your debt as a whole is costing you. That number — your burden average interest rate — will help you compare money-saving options. leaden average interest pace is the interest rate that represents the price of all your loans combined. It is the burden modal of your current loans rounded up to the nearest one-eighth of one percentage. The federal government uses the weighted average matter to rate to determine your new interest rate if you decide to consolidate your federal scholar loans
For exercise, if you owe one scholar loan for $ 10,000 at an interest rate of 4 % and another loanword for $ 20,000 at 8 %, you owe $ 30,000. The average interest rate would be 6 %. But the burden average matter to rate — which takes into retainer the balance you owe at each interest pace — would be 6.67 %.
How is your weighted average interest rate used?
If you consolidate multiple federal scholar loans into a single lend, your modern lend will carry an interest pace that is the leaden median of your current loans rounded improving to the nearest one-eighth of 1 percentage. The repayment term is determined by the entire sum you owe. The burden average interest pace calculator above will estimate your new conduct consolidation lend requital. If you have well accredit, you can refinance both federal loans and private loans through a private lender. Use the leaden average interest rate produced by the calculator above to shop and compare scholar lend refinancing offers when exploring whether it ‘s a good equip for you.
Other student loan calculators
student loan refinance calculator : Use this calculator to compare your stream lend requital or multiple payments with a refinance scholar loanword. student lend consolidation calculator : Use this calculator to compare your payments under federal loanword consolidation plans with your current bills.
casual student loan matter to calculator : Use this calculator to estimate the sum of sake that your loan accrues daily and between requital periods. discretionary income calculator : Use this calculator to determine what you would pay under federal income-driven repayment plans. student loan calculator : Use this calculator to determine the monthly payment on newfangled student loans you take out, federal or individual. scholar loanword affordability calculator : Use this calculator to determine an low-cost monthly scholar lend payment and how much that allows you to borrow for college. parent plus loans calculator : Use this calculator to estimate your monthly payments on union direct PLUS loans.
Key terms in this story
consolidation : A action that combines multiple federal scholar loans into one federal loan through the Department of Education. Consolidation won ’ t lower your pastime rate, but may be necessity for some federal loanword refund programs. refinance : The process of swapping out your current student loans for a newly secret lend with more favorable terms, like a lower pastime rate. Refinancing can help save you money on your loan and can be right for people with stable finances. leaden average interest rate : The interest rate that represents the price of all your loans combined. The slant average interest rate is the weighted average of your stream loans rounded up to the nearest one-eighth of one percentage. It ’ s used to determine your new concern pace if you decide to consolidate your federal student loans .